LOS ANGELES--(BUSINESS WIRE)--Korean Air has retained Thomas Properties Group, Inc. (NASDAQ:TPGI) to
develop a one billion dollar mixed-use redevelopment plan for the nearly
three-acre Wilshire Grand Hotel and office site on the southwest corner
of Wilshire and Figueroa in the heart of the city’s financial district.
The proposal envisions a nearly two million-square-foot signature
development adding new Class A offices, condominiums and hotel space to
the city’s urban core.

The proposal is to replace the existing complex with two high-rise
towers, totaling approximately 1,750,000 square feet: a 40-story tower
featuring a luxury hotel of up to 700 rooms topped by several floors of
condominiums, and a 1,150,000-square-foot, 60-story office tower,
connected with plazas and open space, designed to meet U.S. Green
Building Council LEED certification standards.

"This exciting and bold new project is a major step forward in our
efforts to add green, multi-use developments to the center of our city,"
Mayor Villaraigosa said. “Standing just a few blocks from Staples Center
and L.A. Live, the Wilshire Grand redevelopment effort will help
revitalize downtown, and we look forward to seeing this proposal proceed
through the public review process and produce a new landmark that
benefits Los Angeles, the community, and the local economy."

“Downtown is continuing to evolve and it is rewarding to see that our
collective vision for the area is inspiring private owners to re-imagine
properties and shape them in a way that further enhances our community,”
said Councilmember Jan Perry.

“Thomas Properties Group has extensive experience with complex projects
ranging from securing approvals through designing, developing and
leasing. It is a highly regarded firm that has a long history in Los
Angeles,” said Y. H. Cho, Korean Air’s Chairman and CEO. “They will
immediately begin working with the community and the city to begin the
approval process.”

Korean Air acquired the current Wilshire Grand Hotel in 1989 under the
name of Hilton Hotel & Towers. The airline also owns three hotels in
Korea and another in Hawaii.

“It is rare to have the opportunity to shape a new project on a full
city block in the heart of a major metropolitan city center such as Los
Angeles. With 2.7 acres, we can create a distinctive destination that is
interconnected with the existing business, shopping and entertainment
venues. As a property and business owner in downtown Los Angeles, we
recognize the need for every development to enhance the walkability of
our city and create a more vibrant street-level experience,” said James
A. Thomas, Chairman and CEO, Thomas Properties Group. “Now is a good
time to be working through the approvals of a new development. Together
with Korean Air, we are looking to the future of this property and how
it can better serve the community of Los Angeles.”

Thomas Properties Group purchased the nearby 2.7 million-square foot
City National Plaza in 2003 and has completed a thorough restoration and
repositioning of the iconic property. The firm is a leader in the
management and development of sustainable and high-performance buildings.

A.C. Martin Partners are the architects designing the plans and
buildings. Thomas Properties and A.C. Martin previously worked together
on several projects including the CalEPA headquarters building in
Sacramento that is the first LEED Platinum-certified high-rise in the
United States.

Los Angeles has been the center of Korean Air’s operations in North and
South America since its first transpacific flight in 1972. The airline
now is the largest transpacific carrier out of LAX and operates 24
weekly flights between Los Angeles and Asia.

“Korean Air has a long and deep-rooted commitment to Los Angeles,” Cho
said. “The Korean community here is the largest in the world outside of
Seoul, and Korean Air is the largest transpacific carrier out of LAX. We
have significant real estate holdings here and have a vested interest in
Los Angeles' success.”

About Korean Air: Korean Air is a subsidiary of the Hanjin Group,
one of the world’s largest logistics companies. The airline operates
almost 400 passenger flights per day to 116 cities in 39 countries and
has 119 flights between the Americas and Asia each week. It is a
founding member of SkyTeam, the global airlines alliance - partnering
Aeroflot, AeroMexico, Air France, Alitalia, China Southern Airlines, CSA
Czech Airlines, Continental Airlines, Delta Air Lines, KLM and Northwest
Airlines to provide customers with extensive worldwide destinations,
flights and services. More on Korean Air's programs, routes, frequency
and partners is available at www.koreanair.com.

About Thomas Properties Group

Thomas Properties Group, Inc., based in Los Angeles, is a full-service
real estate company that owns, acquires, develops and manages primarily
office, as well as mixed-use and residential properties on a nationwide
basis. The company’s primary areas of focus are the acquisition and
ownership of premier properties, both on a consolidated basis and
through its strategic joint ventures, property development and
redevelopment, and property management activities. The company seeks to
capitalize on opportunities for above-average risk-adjusted investment
returns from real estate ownership, while managing the volatility
associated with the real estate industry through joint-venture ownership
structures. For more information on Thomas Properties Group, Inc., visit www.tpgre.com.

Forward-Looking Statements

Statements made in this press release that are not historical may
contain forward-looking statements. Although Thomas Properties Group
believes the expectations reflected in any forward-looking statements
are based on reasonable assumptions, these statements are subject to
numerous risks and uncertainties. Factors that could cause actual
results to differ materially from Thomas Properties Group's expectations
include actual and perceived trends in various national and economic
conditions that affect global and regional markets for commercial real
estate services, including interest rates, the availability of credit to
finance commercial real estate transactions, and the impact of tax laws
affecting real estate. For a discussion of some of the factors that may
cause our results to differ from management's expectations, see the
information under the captions "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of Operations
- Factors That May Influence Future Results of Operations" in our 10-K
for the year ended December 31, 2007, and contained in our reports on
Form 10-Q for fiscal quarters during 2008, which have been filed with
the SEC. Thomas Properties Group disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.